Maximizing Savings: ABSD Remission/Refund for Married Couples in Singapore
Understanding ABSD Remission/Refund
In Singapore, the Additional Buyer’s Stamp Duty (ABSD) can be a significant cost for property buyers. However, only married couples with at least one Singapore Citizen spouse can benefit from ABSD remission under certain conditions.
ABSD remission applies when the couple purchases a residential property and meets specific criteria set by the government.
Who is Eligible for ABSD Remission/Refund?
First Property Purchase:
1. The couple must be purchasing their first residential property together.
2. At least one of the spouse must be Singapore Citizens.
Subsequent Property Purchase:
The couple must sell their first residential property within six months of purchasing the second property if it’s completed. If it’s an uncompleted property, the sale must occur within six months of receiving the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC).
Application Process for ABSD Remission/Refund
The application process for ABSD remission involves several steps. Couples must submit the necessary documents to the Inland Revenue Authority of Singapore (IRAS). These documents include the marriage certificate, identity cards, the sale and purchase agreement and the proof of sale for the first property.
Key Conditions to Note for ABSD Remission/Refund
Ownership Limitation: The couple must ensure they do not own more than one residential property at any point in time.
Timely Sale of First Property: If the couple fails to sell their first property within the stipulated timeframe, the ABSD remission will be revoked, and they will be required to pay the ABSD along with interest.
Avoiding Penalties when it comes to ABSD Remission/Refund
To avoid the hefty penalties associated with the withdrawal of ABSD remission, it's crucial to adhere to the specified timelines for selling your first property. Proper planning and timely execution can save you a significant amount of money.
Married couples are encouraged to start marketing their first property early at realistic prices to ensure they can meet the six-month sale timeline for the ABSD refund. As an extension of the six-month timeline will not be acceded to, married couples can consider to secure a buyer for the sale of their first property before purchasing their next property to avoid incurring ABSD.
Conclusion
ABSD remission for married couples in Singapore is a valuable opportunity to maximize savings and minimize risk when purchasing a home. It is not wise to put yourself in a situation where you run the risk of not being able to get the remission or refund of ABSD. However over at PropZen Consultant, by leveraging on our data analytics, we would be able to advise our clients which is the best approach for your unique situation. Make informed decisions instead of taking a gamble with your hard earned money and security. By understanding the eligibility criteria and application process, couples can take full advantage of this benefit. For detailed information and to ensure you meet all conditions, visit the IRAS website.
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